Franchising In The Middle East

Franchising In The Middle East

Dubai, GCC & MENA Franchises Dubai remains the preferred base for franchised operations in the region, given its tax status, the comparative stability of its legal and regulatory systems and it openness to foreign investment, though Most countries in the Middle East region do not have franchise- specific legislation

· The franchisee market is dominated by a small number of players who take multiple Brands franchise known as Franchise Conglomerates ,with some having as many as 50- 55 brands in their portfolio To be a franchise you need a proven successful business, with distinctive brand, system, name and appearance:

· A business, which can be easily duplicated in other locations to create a manageable and profitable network

· Been running at least two outlets for a reasonable length of time

 · A business which can be easily learned in a reasonable period of time by someone with the required knowledge, skills and interest to fit the desired franchisee profile 19

 · An on-going income from marketing and management service fees

· Increase the value of the brand and the mother company

These are just the general benefits of franchising. Each franchising project is different and there are many other benefits that apply to each different case. Middle East's strategic location has a key role in expanding any business around the world. Franchisors seeking new markets favor the Middle East as a franchising destination as it assures easy accessibility and communication with the surrounding areas. The most moderate estimate of the franchise industry in the Middle East and North Africa put it at $ 30 billion today. It also puts the annual growth of Middle East franchising sector at 27 per cent. This frantic pace provides huge opportunities for franchisors to bring their brands to the region, as this trend is set to continue for years to come, powered by massive consumption appetite, economic growth and record oil prices. Ensure the timing is right for the business to enter the international arena. In the last decade many Middle Eastern businesses proved to be very successful in the rest of the world with their efficient style, cost management and competitive distinguished products, especially in the retail, food and catering sectors.